Mumbai: Tata Steel Limited has disclosed that its wholly owned subsidiary Neelachal Ispat Nigam Limited (NINL) has received a show-cause notice (SCN) from the Odisha government seeking recovery of ₹587.86 crore towards alleged shortfall in additional charges on iron ore dispatches.
The notice, issued on February 25, 2026 by the Office of the Deputy Director of Mines, Koira Circle, under the Steel & Mines Department of the Government of Odisha, pertains to the period between February 2022 and March 2025. The demand has been calculated at 150% of royalty payable under Section 8A(8) of the Mines and Minerals (Development and Regulation) Amendment Act, 2021.
Tata Steel informed stock exchanges under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR) that NINL believes its iron ore mine does not fall under the purview of Section 8A(8) of the MMDR Act, as alleged in the notice, and has termed the SCN “erroneous”.
“NINL believes that it may not be liable to pay the amount as stated in the SCN. NINL will suitably respond to the SCN and, if needed, pursue legal remedies before a court of law,” the company said in its disclosure.
The steel major added that there is no impact on the financial, operational or other activities of Tata Steel or NINL arising from the notice at this stage.
Tata Steel had acquired a controlling stake in NINL in FY2023 through its then-listed subsidiary Tata Steel Long Products Ltd. Following the amalgamation of Tata Steel Long Products with Tata Steel in FY2024, NINL became an indirect subsidiary and subsequently a wholly owned subsidiary in FY2026.
The development underscores ongoing regulatory scrutiny in the mining sector, particularly around interpretation of royalty-linked provisions under the amended MMDR fram ework.